iShares Small Cap Fund (IWM) has added 30 cents to $77.65 and one strategist initiates a Dec 75 – 77 – 78 – 80 iron condor for a net credit of 68 cents, 13000X. They sold the Dec 77-78 strangle for the body and bought the Dec 75-80 strangle for the wings. This spread pays off if shares hold at current levels, between $77 and $78, through the expiration at the end of this week. Risk is a $1.62 plus commissions. Similar to our EEM iron fly, but wings are two strikes below the body.
Category: All ETFs
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.